Bitwise CIO Matt Hougan said BlackRock Bitcoin ETF is one of 2024’s fastest-growing ETFs with wealth adviser participation.
The inflows into spot Bitcoin ETFs have turned positive after two weeks of substantial outflows totaling over $1.2 billion.
This shift coincides with a rebound in Bitcoin’s price, which has risen by more than 4.40% to reach $57,100 as of the latest update.
Bitcoin has bounced back strongly from a weekend dip to $54,000, indicating a change in market sentiment.
Amid recent criticism of Bitcoin ETFs, Bitwise CIO Matt Hougan has defended their continued interest from investment advisers.
Bitcoin ETF Inflows Resume Amid Market Sentiment Shift
According to data from Farside Investors, Monday saw total inflows into spot Bitcoin ETFs amounting to $28.6 million.
Fidelity’s FBTC received $28.6 million in inflows, while Bitwise’s BITB recorded $22.0 billion in inflows.
Conversely, Grayscale’s GBTC experienced $22.8 million in outflows, and BlackRock’s IBIT saw $9.1 million in outflows.
These inflows provide significant relief following a period of substantial outflows over the past two weeks.
Despite some claims that Bitcoin ETFs are losing traction due to diminished market sentiment, prominent figures in the industry continue to support them.
Bloomberg analyst Eric Balchunas remains optimistic about Bitcoin ETFs, noting that the $1.2 billion in outflows is relatively minor compared to the $46 billion in assets under management (AUM) of these ETFs.
He emphasized that such fluctuations are normal and not a cause for major concern.
Bitwise CIO Challenges Claims of Decreased Adoption Rates
Last week, Jim Bianco of Bianco Research suggested that Bitcoin ETFs are experiencing reduced interest from investment advisers and have a relatively small adoption rate.
In response, Bitwise CIO Matt Hougan argued that Bitcoin ETFs are actually seeing faster adoption among investment advisers than any other new ETFs in history.
Hougan highlighted that BlackRock’s IBIT ETF has attracted $1.45 billion in net flows from investment advisers, making it the second fastest-growing ETF launched this year, aside from other Bitcoin ETFs.
He compared this to the KLMT ETF, which has seen limited participation from investment advisers despite being seeded with $2 billion from a single investor.
Hougan emphasized that while investment managers may represent a smaller portion of Bitcoin ETF buyers, their adoption of these products has been remarkably rapid.
The recent surge in Bitcoin’s price has been a major factor driving these inflows. As of the latest update, Bitcoin is trading at $57,107.12, up 4.4%, with a market capitalization of $1.130 trillion.
